Whether analyzing National, State or Regional October real estate reports along with November projections, all are pointing to brisk activity as we enter Sarasota’s “most wonderful time of the year.” The continuation of the 2013 trend of strong sales, increased prices, tight inventory, and heavier buyer interest suggests that the Sarasota Real Estate market is poised to see one of its most active seasons in recent history. Two years of uninterrupted growth in number of units sold as well as median price gains, leads economists and industry experts to forecast year-end improvement in both sales and price compared to 2012 of 10-11%, and sales to continue at a similar pace in 2014 while prices soften a bit as more inventory enters the pipeline.
Though the rapidity of new home building is not expected to meet the demand, homebuilders remain confident that market conditions will be robust enough to sustain absorption of both single and multi-family developments. As we have seen locally, the seemingly daily announcements of new projects throughout the Sarasota and Manatee areas signifies a strong belief on the part of our regional developers that there will be abundant demand from buyers to consume the additional inventory.
In the early months of 2013 condominium sales lagged behind single-family homes, but in recent months there has been a noticeable shift creating a significant drop in available Sarasota condos for sale at virtually all price points. With the peak tourist season kicking off, I expect to see this tightened inventory push prices even more. Just last month condominium median prices jumped a remarkable 20.7% over previous year, while single family homes prices lifted 11.6%. Though a number of luxury condominium projects have been announced recently, most will not be ready for occupancy until 2015, so existing inventory in high-demand locations and well maintained buildings are likely to be one of the charms of the Sarasota real estate market this coming year.
Sarasota Real Estate data such as an increase in median price of 22% since last year, timeframe from listing to sale falling almost 17%, percentage of list price to sale price rising, total sales continuing its climb, inventory remaining tight, and other compelling evidence all clearly show an impressive market recovery. My own client traffic from both prospective buyers and sellers has also shown a marked increase this year with the last several weeks much more active than the previous few years. Taking into account all of these factors, I am not afraid to confidently predict a brisk winter and spring selling season.
Before interest rates begin their expected ascent, tight inventories continue their upward effect on pricing, and while demand is in our marketplace, I cannot urge indecisive buyers and sellers that are still sitting on the sideline enough that now is the time to make their move. The quick yet accurate market analysis that I offer sellers to determine the right time and price to list their property, as well as my decades of experience in the Sarasota market offering interested buyers a comprehensive selection that specifically meets their unique needs, has resulted in consistent client satisfaction. It would be my distinct pleasure to assist you, your friends, family or acquaintances with a decision to buy or sell a property.
Michael Saunders’ recent blog post titled “Looking Forward to 2014” offers some additional insight into what may be to come during our peak selling season and beyond.